In re the Arbitration between Board of Education of Half Hollow Hills Central School District & Half Hollow Hills Teachers Ass'n

79 Misc. 2d 223, 358 N.Y.S.2d 285, 87 L.R.R.M. (BNA) 2281, 1974 N.Y. Misc. LEXIS 1631
CourtNew York Supreme Court
DecidedJuly 19, 1974
StatusPublished
Cited by5 cases

This text of 79 Misc. 2d 223 (In re the Arbitration between Board of Education of Half Hollow Hills Central School District & Half Hollow Hills Teachers Ass'n) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re the Arbitration between Board of Education of Half Hollow Hills Central School District & Half Hollow Hills Teachers Ass'n, 79 Misc. 2d 223, 358 N.Y.S.2d 285, 87 L.R.R.M. (BNA) 2281, 1974 N.Y. Misc. LEXIS 1631 (N.Y. Super. Ct. 1974).

Opinion

William L. Underwood, Jr., J.

This is a special proceeding commenced by the Board of Education of Half Hollow Hills Central School District of Huntington and Babylon (“ Board ”) to vacate the arbitrator’s interim ” award, pursuant to CPLR 7511 (subd. [b]) upon the specific ground that the arbitrator exceeded his power in making the award (CPLR 7511, subd. [b], par. 1, cl. [iii]). The respondent Half Hollow Hill Teachers [225]*225Association, Inc. (“Association”) in addition to opposing the application, has interposed a cross motion to dismiss the petition. The Association urges dismissal upon the grounds that (a) the proceeding was instituted by order to show cause and affidavit instead of by a notice of petition and petition, (b) the order to show cause and affidavit were not served as directed in the order to show cause, (c) the award is not final and definite and (d) finally, that the arbitrator did not exceed his powers.

The court shall first deal with the jurisdictional objections raised by the Association.

As to the form of process utilized by the Board, it is unquestioned that a special proceeding may be commenced either by service of a notice of petition or by an order to show cause. (CPLR 304; Matter of Klahs, 55 Misc 2d 462). With respect to the ‘ ‘ affirmation ’ ’ annexed to the order to show cause, it contains all of the ingredients essential to a petition. (See 4 Carmody-Wait 2d New York Practice, § 28:1, p. 168.)

It is fundamental that the court, in determining the nature of an instrument looks to its substance, rather than to its label. To the extent that the “ affirmation ” does not bear the title of “petition”, it does not violate any substantial right of the Association, and the defect may be disregarded by the court as a mere irregularity. (CPLR 2001.)

The order to show cause required service ‘ by personal service or by mailing the same by certified mail ’ ’. The petitioner served the order to show cause upon the attorney for the Association, in person.

1 ‘ A special proceeding is commenced and jurisdiction acquired by service of a notice of petition or order to show cause ” (CPLR 304). “ A notice of petition shall be served in the same manner as a summons in an action ” (CPLR 403, subd. [c]). Since the Association is a corporation, “personal service” of the order to show cause as prescribed in the order to show cause, necessitated compliance with CPLR 311 (subd. 1) which provides for personal service upon a corporation by serving “ an officer, director, managing or general agent, or cashier or assistant cashier or to any other agent authorized by appointment or by law to receive service ’ \

In State of New York v. Cortelle Corp. (73 Misc 2d 352) service was made upon the attorney for the defendant corporation. There, the Supreme Court, Nassau County, made the following findings (p. 354): “ Before considering the various motions, the court notes that although defendants Cortelle Corp., Ditmere Corp. and Tenbar Corp. do not appear to oppose the [226]*226plaintiff’s motion, neither does it appear that the court has jurisdiction in this action over these corporations. Service of the summons arid complaint and order to show cause was purported to have been effected by •serving Joseph D. Stim, described as attorney for said defendants. Such service is not effective to confer jurisdiction upon those corporate defendants. (CPLR 311.) ” [Emphasis added.]

The Board does not refute the Association’s allegation that the only service made was upon Donald J. Werner as attorney for the Association. However, the Board relies upon rule 36 of the Voluntary Labor Arbitration Rules /of the American Arbitration Association which reads as follows: 36. Serving of Notices * * * Each party to a Submission or other agreement which provides for arbitration under these Rules shall be deemed to have consented and shall consent that any papers, notices or process necessary or proper for the initiation or continuation of an arbitration under these Rules and for any court action in connection therewith or the entry of judgment on an award made.thereunder, may be served upon such party (a) by mail addressed ,to such party or his attorney at his last known address, or ¡(b) by personal service, within or without the state wherein the arbitration is to be held. ’ ’

As already teeen, CPLR 311 (subd. 1) in addition to the persons enumerated therein, also permits service upon “ any other agent authorized by appointment or by law to receive service. ’ ’

CPLR 318 and section 305 of the Business Corporation Law make provisions for appointment or designation by a corporation of a natural person as an agent to receive process on behalf of the corporation. However, the CPLR provision requires that the agent must be designated in a writing filed in the office of the clerk of the county in which the principal to be served resides or has its principal office, and the Business 'Corporation Law provision speaks in terms of a “ registered agent. ’ ’ It would appear that neither of these sections contemplates the appointment of an [attorney to receive process under rule 36 of the Voluntary Labor Arbitration Rules of the American Arbitration . Association.

As to section 5-1502H of the General Obligations Law, it pro- • vides that in a “ statutory short form power of attorney, the language conferring general authority with respect to ‘ claims and litigation,’ must be construed to mean that the principal authorizes the agent: * * * 6. To wave the issuance and service of a summons, citation or other process upon the principal, to accept service of process ’ ’,

[227]*227The rule relied upon by the Board as its authority for service upon the attorney, obviously does not come within the purview of the foregoing statute.

There has been however, an expanding concept permitting parties to agree to service upon a third person (who is neither the Secretary of State, nor an agent authorized pursuant to CPLR 318 or section 305 of the Business Corporation Law to accept service on behalf |of a contracting party, with respect to any litigation arising from the contract. Under such circumstances, the requirements of due process are deemed met when the “agent” promptly accepts the summons or process, and promptly transmits it or notice thereof to the principal. (See National Rental v. Szukhent, 375 U. S. 311.)

There is no contention made by the Association here that when jts attorney was .served pursuant to rule 36 of the American Arbitration Association, that it did not receive prompt notice of the proceedings herein. Nor is there any assertion by the Association that it is not bound by rule 36 in submitting its grievances for arbitration. On the contrary, the Association appears to ’concede prompt notice of service of the order to show cause, and that rule 36 is binding upon it. The court, based upon these concessions, does not deem it necessary to conduct 'a hearing on the question of prompt notice to the Association. The Association has. impliedly consented to rule 36 of the Rules of the American Arbitration Association.

Joseph M. McLaughlih, in his Practice Commentaries to CPLR 311 (McKinney’s Cons. Laws of N. Y., Book 7B, CPLR 311) criticizing the holding of the court in Isaf v. Pennsylvania R. R. Co. (32 A D 2d 578) said:

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79 Misc. 2d 223, 358 N.Y.S.2d 285, 87 L.R.R.M. (BNA) 2281, 1974 N.Y. Misc. LEXIS 1631, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-arbitration-between-board-of-education-of-half-hollow-hills-nysupct-1974.